The Dominican Republic offers one of the Caribbean’s better deals for real estate investors, and the Confotur tax incentive program is a big reason why. If you’re looking at tourism-related property here, understanding Confotur tax exemptions in the Dominican Republic isn’t optional—it’s the difference between a good investment and a great one. This guide breaks down how the program actually works, which properties qualify, what the application process looks like, and how to figure out your real savings.
What is Confotur and why should foreign investors care?
Confotur stands for Consejo de Fomento Turístico (Tourism Development Council). It’s a government program created under Law 158-01 and later updated by Law 195-13. The program exists because tourism drives roughly 15% of Dominican GDP, and the government wants foreign money flowing into that sector.
The Ministry of Tourism (MITUR) runs the program. They work with the Dirección General de Impuestos Internos (DGII) to make sure qualified projects and buyers actually receive their benefits.
The actual benefits: what Confotur tax exemptions in the Dominican Republic give you
1. Transfer tax exemption (100%)
Real estate purchases normally come with a 3% transfer tax based on assessed value. Confotur wipes that out completely. On a $500,000 USD property, you’re keeping $15,000 in your pocket at closing.
2. Annual property tax exemption (IPI)
The Impuesto al Patrimonio Inmobiliario (IPI) hits property owners with 1% annually on combined holdings above RD$9,860,649. Confotur-certified properties skip this tax for 15 years. On a $750,000 USD condo, that’s roughly $112,500 USD in property tax savings over the exemption period.
3. Rental income tax exemption
Rent out your Confotur property? The rental income is exempt from Dominican income tax for the same 15-year window. With rental income tax rates hitting up to 27%, this exemption makes buy-to-rent strategies considerably more attractive.
Which properties actually qualify?
Geographic requirements
Properties must sit within designated tourism development zones established by MITUR, including: Punta Cana and Bávaro, Cap Cana, Puerto Plata, Samaná Peninsula, La Romana and Bayahíbe, the Santo Domingo Colonial Zone, and Jarabacoa and Constanza.
Project-level certification
The development itself needs certification from Confotur before you can benefit. Ask for the project’s Confotur resolution number and verify it with MITUR yourself. Good developers hand this over without hesitation.
Buyer requirements
Both Dominicans and foreigners can use Confotur exemptions. No residency requirements, no nationality restrictions. You must buy within a certified project, register with DGII correctly, and maintain the property’s tourism-use designation.
How the application and registration process works
- Due diligence before purchase — Confirm the project’s Confotur status. Get the MITUR resolution and verify it against Ministry of Tourism records.
- Closing and title transfer — The deed (acto de venta) should reference the project’s Confotur certification. Title gets registered with the Registro de Títulos.
- DGII registration within 30 days — Submit the registered deed, proof of Confotur certification, buyer identification, RNC number, and Form IR-1. Missing this deadline can result in loss of exemptions.
- Exemption activation — DGII processes your registration and applies the Confotur exemptions to your property record.
For help with the registration process, our free legal tools are built for foreign investors dealing with exactly these procedures.
Mistakes that trip up foreign investors
Not verifying certification: Developers sometimes market properties as “Confotur eligible” when certification is pending or has lapsed. Check with MITUR directly. Always.
Missing the 30-day DGII deadline: Enforced without exception. Miss it and you risk penalties or losing exemption benefits.
Misunderstanding the exemption timeline: The 15-year clock starts from the project’s certification date, not your purchase date. Buy into a project certified in 2015, and your exemption ends in 2030 regardless of your closing date.
Ignoring resale implications: Selling a Confotur property transfers the remaining exemption period to the buyer — a genuine selling point if documented properly.
What the numbers actually look like
Two identical $600,000 USD properties — one with Confotur, one without:
Without Confotur: Transfer tax $18,000 + property tax over 15 years $90,000 + rental income tax $60,000 = $168,000 in additional costs.
With Confotur: All three = $0. Total savings: $168,000.
Key takeaways
- Confotur eliminates transfer tax (3%), annual property tax (1%), and rental income tax for 15 years
- Properties must be in designated tourism zones within MITUR-certified developments
- Verify the project’s Confotur resolution number with MITUR directly before signing
- Register with DGII within 30 days of closing or risk losing your exemptions
- The 15-year clock starts from project certification date, not your purchase date
- Foreign and Dominican buyers both qualify — no residency requirements
- Savings on mid-range properties can exceed $100,000 USD over the exemption period
Frequently asked questions
What is the Confotur tax exemption in the Dominican Republic?
Confotur is a tourism investment incentive program under Law 158-01, managed by the Consejo de Fomento Turístico (MITUR). It grants qualified real estate buyers three tax exemptions for 15 years: 100% exemption from the 3% property transfer tax, 100% exemption from the annual property tax (IPI), and 100% exemption from rental income tax. Both Dominican and foreign buyers qualify.
Which properties qualify for Confotur tax exemptions?
Properties must be located within designated tourism development zones recognized by the Ministry of Tourism (MITUR) — including Punta Cana, Cap Cana, Puerto Plata, Samaná, La Romana, Bayahíbe, and the Santo Domingo Colonial Zone. The development itself must hold a valid Confotur certification issued by MITUR before you purchase. Always verify the project’s Confotur resolution number directly with MITUR before signing.
How much money can I save with Confotur exemptions?
On a USD $600,000 property, Confotur exemptions can save approximately USD $168,000 over the 15-year period: USD $18,000 in transfer tax at closing, approximately USD $90,000 in annual property tax, and approximately USD $60,000 in rental income tax (estimated). The exact savings depend on property value, rental income, and the years remaining on the project’s certification.
When does the 15-year Confotur exemption period start?
The 15-year exemption period runs from the date of the project’s Confotur certification by MITUR — not from your individual purchase date. If you buy into a project certified in 2018, your exemption expires in 2033 regardless of when you closed. This is a common mistake: always ask for the certification date and calculate the remaining exemption period before you buy.
What is the process to register a Confotur property with the DGII?
After closing, you have 30 days to register with the DGII. Required documents include: a copy of the registered deed, proof of the project’s Confotur certification, buyer identification (passport for foreigners), your RNC tax number or an application for one, and Form IR-1 for property registration. Missing the 30-day deadline can result in penalties or loss of exemption benefits.
Need help with Confotur tax exemptions in the Dominican Republic? Connect with a licensed Dominican attorney for a consultation tailored to your case.
Last verified: March 2026. Dominican law changes periodically — consult a qualified attorney before acting on this information.
